A&O advises on the establishment of a $3.3bn African energy joint venture between Africa Finance Corporation and an infrastructure fund managed by Harith General Partners

Allen & Overy is advising Africa Finance Corporation (AFC) and the Pan African Infrastructure Development Fund, an infrastructure fund managed by Harith General Partners (Harith), on the establishment of a joint venture capable of generating 1,575 megawatts of electricity in a number of African countries from power generation assets totalling $3.3 billion.

The joint venture will merge Harith's interests in the Azura Edo independent power plant in Nigeria, the Lake Turkana wind farm in Kenya, the Kelvin power station in South Africa and the Rabai thermal project in Kenya and AFC’s interests in Cenpower, the owner of the Kpone independent power plant currently under construction in Ghana, and the Cabeolica wind farm in Cape Verde.

London Corporate partner, John Geraghty, commented: “The new joint venture will create one of the biggest pan-African energy companies and will make an invaluable contribution to improving power generation capacity across Africa which in turn should stimulate economic growth on the continent. This unique and challenging transaction showcases our strengths in working collaboratively across offices and our sector and African experience.”

The deal is subject to a number of regulatory approvals.

The Team

On the M&A side, London partner John Geraghty is leading with senior associate Sarah Shaw and support from associates Kaylee Lemieux and Tom Betts and trainee Mohammed Almarzouki.

The Johannesburg team advising on the transaction is being led by partners Khurshid Fazel and Jason van der Poel, together with London partner Tim Scales. They are being assisted by senior associate Lebohang Mpumlwana and associates Kuda Chirambadoro and Claire Tuch in the Johannesburg office and senior associates Robert Bodnar and Lulama Selele and associate Matthew Smith in the London office. Johannesburg partner Khurshid Fazel commented: “The deal was complex and ambitious, as it involved assets held in multiple countries in Africa. A&O’s excellent relationship with local counsel allowed us to perform the work required, within tight timelines. Our deep experience on the continent meant that the assets were familiar to us from previous project financing transactions and our team on the ground in Johannesburg ensured that the work was efficiently co-ordinated by a team with the particular expertise required, especially in the area of tax structuring and advice. We were able to use our global network and knowledge for the benefit of our client”

Anti-trust advice is being provided by London partner Alastair Balfour and associate Kenneth Ko.